Question

Gross profit by department appears on the

Answer 1

Gross profit by department appears on the financial statements of a business and represents the difference between total revenue and cost of goods sold.

Step-by-step explanation:

Gross profit by department appears on the financial statements of a business. The gross profit is the difference between the total revenue generated by a department and the cost of goods sold. It represents the amount of money left after deducting the direct costs associated with producing and delivering goods or services.

For example, if a department generates $100,000 in revenue and incurs $70,000 in cost of goods sold, the gross profit would be $30,000 ($100,000 - $70,000). This information is important for analyzing the profitability of different departments within a business and making informed decisions about resource allocation and strategic planning.

Answer 2

Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross profit will appear on a company's income statement and can be calculated by subtracting the cost of goods sold (COGS) from revenue (sales).